A memo circulated within McDonald’s has informed staff about impending layoffs. Chris Kempczinski also revealed that the company would be reorganised.
McDonald’s decision comes after some of the largest American companies, such as Amazon, Salesforce and Goldman Sachs announced major layoffs during the beginning of the new year.
Chris Kempczinsk iMcDonald’s CEO announced to the Wall Street Journal that “some jobs that are existing today are either going to get moved or those jobs may go away”.
McDonald’s is working to improve restaurant performance as it prepares to cut jobs as part of an initiative to focus on promoting sales growth. These layoffs are intended to take place in the spring 2023. Its not clear how the announcement will be made at this point but likely will be notified in the mcdonald’s employee payroll website.
“We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead. Certain initiatives will be de-prioritized or stopped altogether. This will help us move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth,” stated the Mr Kempczinsk.
The company is looking to get terminate around two hundred thousand staff from its most recent estimate. A CNBC report says the company’s CEO wrote an internal memo disclosing the layoffs and restructuring a nationwide office. The CEO added that the company itself would be restructured.
McDonald’s plans to notify employees about its impending layoffs by April 3, 2023. These layoffs are said to be to lower costs. According to The Wall Street Journal, McDonald’s CEO expects to save money after the layoffs but has not yet established a specific dollar amount.
The CEO did however confirm that the company needs to “innovate faster and work more efficiently” rather than just lower overheads.